When the parts don’t fit, you get lousy performance. Porsche magazine, with the latest and greatest new parts, get people enthusiastic about making changes for better performance. Porsche is the best at putting together amazing cars from their parts bin. We believe most people have a whole car and most people have a Global Balanced Portfolio benchmark. The portfolio management business is becoming a parts industry – selling active parts to all the mechanics putting portfolios together. Just like Porsche, the first large brand to successfully market a Global Balanced Portfolio that outperforms over time will command a higher price, loyalty, and margins. Taking risk is unavoidable when investing. Since 1950, a balanced portfolio (60/30/10) has never had a negative return over any 5-year monthly rolling period and, 41% of the time, had a return greater than 10%. If this is the expected return vs. risk, where risk is the permanent loss of my money, I accept. Investing in any one part (i.e. real estate) has greater risk, less diversification, and less liquidity. Therefore, you should expect a greater return before buying any one part. Adding more parts to reduce risk has reduced return and the same old parts (parts bin) in different combinations can improve performance. Getting better performance will get even more difficult and disintermediation will continue as the consumer buys direct. Because parts will be parts, let’s build a portfolio.